Makalah B.inggris Kel.8 Sem.2
Makalah B.inggris Kel.8 Sem.2
Makalah B.inggris Kel.8 Sem.2
Arrange by Group 8:
Yasir Aulia Rahman 11220530000045
Naila Khansa Azzahra 11220530000058
Rifki Maulana 11220530000069
1. Introduction
As ethics and social responsibility are becoming more and more important for the successful
operation of companies and financial institutions. According to the concept of ethics and
social responsibility managers are obliged to provide the social environment changes, to
adjust them with the organization overall goals and objectives and the goals/objectives of the
groups concerned; and to take concrete steps to promote the general interest of the society.
This is achieved through transparent and ethical behavior of the organizations in its
sustainable development and takes into account the expectations of stakeholders, in
accordance with international standards of ethics integrated in the enterprise. Ethic and social
responsibility are based mainly on voluntary strategic decisions of the organization and its
means more than compliance and fulfilling the law. There is no doubt that providing ethic,
social responsibility and social services to the local community increases the bond between
the financial institution and its local environment. Islamic finance is based on the ethic and
social responsibility they emphasize the ethical and social responsibility elements which helps
institution to increase the number of their clients. Ethics and social responsibility can be
learned also by the life and the work of the Prophet (SAW) who use do enjoy a very high
respect of sincerity, honesty and truthfulness. He was a business man also and during his work
he emphasized the importance of fair dealing and being honest to the costumers as he claims
“Islam encourages an honest trader greatly and offers a high rank on the Day of Judgment. A
businessman will be honored along with the martyrs but the conditions are sincerity,
truthfulness, honesty etc. in dealings” (Al-Bukhari).
Translate
Karena etika dan tanggung jawab sosial menjadi semakin penting untuk keberhasilan operasi
perusahaan dan lembaga keuangan. Menurut konsep etika dan tanggung jawab sosial,
manajer berkewajiban untuk memberikan perubahan lingkungan sosial, menyesuaikannya
dengan tujuan dan sasaran organisasi secara keseluruhan dan sasaran/sasaran kelompok yang
bersangkutan; dan mengambil langkah-langkah konkrit untuk memajukan kepentingan umum
masyarakat. Hal ini dicapai melalui perilaku organisasi yang transparan dan beretika dalam
pengembangannya yang berkelanjutan dan memperhatikan harapan para pemangku
kepentingan, sesuai dengan standar etika internasional yang terintegrasi dalam perusahaan.
Etika dan tanggung jawab sosial didasarkan terutama pada keputusan strategis sukarela
organisasi dan artinya lebih dari kepatuhan dan pemenuhan hukum. Tidak diragukan lagi
bahwa memberikan etika, tanggung jawab sosial dan pelayanan sosial kepada masyarakat
setempat meningkatkan ikatan antara lembaga keuangan dan lingkungan setempat.
Keuangan Islam didasarkan pada etika dan tanggung jawab sosial, mereka menekankan
elemen tanggung jawab etis dan sosial yang membantu institusi untuk meningkatkan jumlah
klien mereka. Etika dan tanggung jawab sosial dapat dipelajari juga dari kehidupan dan karya
Nabi (SAW) yang sangat menjunjung tinggi ketulusan, kejujuran dan kejujuran. Dia adalah
seorang pebisnis juga dan selama pekerjaannya dia menekankan pentingnya transaksi yang
adil dan jujur kepada pelanggan karena dia mengklaim “Islam sangat mendorong pedagang
yang jujur dan menawarkan peringkat tinggi pada Hari Penghakiman. Seorang pengusaha akan
dihormati bersama dengan para syuhada tetapi syaratnya adalah ketulusan, kebenaran,
kejujuran dll dalam bertransaksi” (Al-Bukhari).
Explanation
The passage highlights the growing importance of ethics and social responsibility in the
successful operation of companies and financial institutions. It emphasizes that managers
have a responsibility to bring about social changes that align with the overall goals of the
organization and the interests of relevant groups. This is achieved through transparent and
ethical behavior, considering the expectations of stakeholders and following international
standards of ethics.
Main idea
As ethics and social responsibility are becoming more and more important for the successful
operation of companies and financial institutions. According to the concept of ethics and
social responsibility managers are obliged to provide the social environment changes, to
adjust them with the organization overall goals and objectives and the goals/objectives of the
groups concerned; and to take concrete steps to promote the general interest of the society.
Supporting Details
This is achieved through transparent and ethical behavior of the organizations in its
sustainable development and takes into account the expectations of stakeholders, in
accordance with international standards of ethics integrated in the enterprise. Ethic and social
responsibility are based mainly on voluntary strategic decisions of the organization and its
means more than compliance and fulfilling the law.
Keyword
Ethics: Etika
Indonesia Context
Because ethics and social responsibility are becoming increasingly important to the successful
operation of companies and financial institutions. like things that have happened around us,
the ethics of being polite to our elders and being responsible in dealing with all forms of
behavior that we have done
Important Word
An important sentence in the provided text is: "Ethic and social responsibility are based mainly
on voluntary strategic decisions of the organization and its means more than compliance and
fulfilling the law."
Meaning of word
Fulfilling: making someone satisfied or happy because of fully developing their character or
abilities.
Truthfulness: the fact of being true; truth. "we have had to judge the truthfulness of the
evidence
Conclusion
Ethics and social responsibility play a crucial role in the successful operation of
companies and financial institutions. This requires transparent and ethical behavior,
adhering to international standards, and going beyond mere legal compliance. By
embracing ethics and social responsibility, organizations can strengthen their
relationship with the local community and attract more clients. Islamic finance, with
its emphasis on ethical and social responsibility, provides an example of how these
principles can be integrated into financial institutions. Additionally, the teachings of
the Prophet Muhammad serve as a guide, emphasizing sincerity, honesty, and fair
dealings. Islamic banks are expected to participate in charitable activities as part of
their commitment to social and humanitarian work. While Zakah is a religious
obligation, Islamic banks should also engage in other acts of goodness and
benevolence. The growth of the Islamic finance industry highlights the importance of
incorporating ethical and social responsibility characteristics into organizations.
Translate
Tanggung jawab sosial telah muncul perlahan selama dekade terakhir. Tanggung jawab sosial
sebagian besar menjadi bagian dari diskusi organisasi secara global dalam mencari nilai dan
daya saing yang lebih besar Perbankan Islam memiliki tujuan yang sama dengan perbankan
konvensional kecuali beroperasi sesuai dengan aturan Syariah, yang dikenal sebagai Fiqh al-
Muamalat (aturan Islam tentang transaksi). Prinsip dasar perbankan syariah adalah bagi hasil
dan kerugian (PLS) dan larangan Riba (riba). Memang, semua transaksi dan kontrak komersial
harus bebas dari unsur Riba (bunga), Gharar (ketidakpastian), Maisir (perjudian) dan non-Halal
(kegiatan yang dilarang). Dari sudut pandang kami keuangan Islam telah memenuhi etika dan
dimensi sosial dan tujuan syariah. Etika didefinisikan sebagai: “standar yang disepakati
tentang apa yang diinginkan dan tidak diinginkan; perilaku benar dan salah; tentang apa yang
dianggap oleh kelompok itu sebagai perilaku baik dan buruk seseorang, subkelompok, atau
entitas yang merupakan anggota kelompok, dan dapat mencakup dasar disiplin yang
ditentukan, termasuk pengucilan” Etika dianggap sebagai konsep agregat yang komponennya
adalah moralitas Tetapi kekhasan etika dan moral adalah bahwa mereka tidak dapat diadili
atau dipaksakan oleh otoritas. Filosofi utama Keuangan Islam yang terkait dengan kerja etika
dan tanggung jawab sosial didasarkan pada tiga aspek. Pertama, Profit and Loss Sharing Mode
of Financing (PLS); kedua, itu adalah kerangka pembagian risiko dan ketiga itu adalah promosi
pembangunan ekonomi dan keadilan sosial melalui praktik bisnis tertentu dan melalui zakat-
sedekah Sistem ekonomi Islam disajikan melalui tujuan dan nilai-nilainya. Mereka
menentukan sifat sistem dan menyajikan pemahaman yang tepat dan esensial dari sistem
ekonomi Islam. Tujuan-tujuan ini murni didasarkan pada etika dan tanggung jawab sosial
Explanation
Main idea
Social responsibility has emerged slowly over the past decade. Social responsibility to
a great extent is becoming a part of organizations’ discussions globally in the search
for greater value and competitiveness Islamic banking has similar purpose as
conventional banking except that it operates in accordance with the rules of Shari’ah,
known as Fiqh al-Muamalat (Islamic rules on transactions).
Supporting details
Islamic Finance refers to all financial, banking, investment transactions, and services that
comply with Islamic rules, principles, and practices, according to Shari’ah Law, known as Fiqh
Muamalat, which means: The Islamic rules on transactions.
Islamic Banking rules are fundamental principles of Islamic Law-Shari’ah where faith, worship,
moral, ethics, justice, equitability, and fairness govern.
Keyword
Zakat: Zakat
Ethics: Etika
Indonesia Context
In Indonesia itself has a bank that does not contain elements of riba, namely the
Indonesian Islamic bank, in which the bank does not add interest for borrowing money
Important word
Meaning of word
Explanation
These verses from the Qur'an highlight the ethical and moral norms in Islam regarding
economic behavior. The first verse emphasizes the importance of not engaging in corrupt or
mischief-making activities. The second verse encourages people to consume what is lawful
and good on Earth and to avoid following the footsteps of the devil. The third verse advises
believers not to forbid what God has made lawful and to avoid exceeding limits. The fourth
verse reinforces the idea of consuming what is lawful and good and emphasizes the duty to
God.
Main idea
Many of the facts listed in the Qur'an are related to ethical and moral norms in Islam
Supporting details
Based on these verses of the Qur’an, Muslim Jurists have unanimously agreed that
catering for the interests of the people and relieving them of hardships is the basic
objective of the Sharia’h
Keyword
Qur’an: Quran
Muslims: Musllim
Indonesia Context
“And eat of the lawful and good that God has given you, and keep your duty to God in whom
you believe” (Qur’an, Surah 5.Al-Maidah, Verse 88). Eating hoofed and fanged animals is a ban
in Indonesia, especially in Islamic society.
Important word
"Based on these verses of the Qur’an, Muslim Jurists have unanimously agreed that
catering for the interests of the people and relieving them of hardships is the basic
objective of the Sharia’h."
Meaning of word
Realiving: to make an unpleasant feeling, such as pain or worry, less strong: She was given a
shot of morphine to relieve the pain.
Conclution
The verses from the Qur'an highlight the ethical and moral norms in Islam, emphasizing the
importance of enjoying lawful provisions, avoiding corruption, and not exceeding limits. Islam
encourages Muslims to pursue their livelihood and aims to create an economic environment
where individuals can find gainful employment. The Qur'an emphasizes ease and the
avoidance of hardship, presenting Islam as a blessing that enriches and improves lives. Muslim
Jurists unanimously agree that catering to people's interests and alleviating their hardships is
the fundamental objective of Sharia'h.
Islam aims at establishing a social order where all individuals are united by bonds of
unity and affection like members of one single family created by One God. This can be
seen from the verse: “O mankind! Surely, I am a messenger of God to you all” (Qur’an,
Surah 7. Al-A’raf, Verse 158). This unity is universal and not parochial. It is not bound
by any geographical boundaries and encompasses the whole of humankind and not
anyone familiar group or tribe or race (Chapra 1979). This is proved by the following
revelations of Qur’an:
● “God orders justice and conduct and giving to relatives and forbids immorality
and bad conduct and oppression. He admonishes you that perhaps you will be
reminded.” (Qur’an, Surah 16. An-Nahl, Verse 90).
● “God commands you to render trusts to whom they are due and when you
judge between people to judge with justice” (Qur’an, Surah 4.An-Nisa, Verse
58).
● “O you, who have believed, be persistently standing firm in justice, witnesses
for Allah, even if it be against yourselves or parents and relatives. Whether
one is rich or poor, Allah is more worthy of both. So follow not [personal]
inclination, lest you not be just. And if you distort [your testimony] or refuse
[to give it], then indeed Allah is ever, with what you do, Acquainted” (Qur’an,
Surah 4. An-Nisa, Verse 135).
Translate:
Islam bertujuan untuk membangun tatanan sosial di mana semua individu disatukan
oleh ikatan persatuan dan kasih sayang seperti anggota satu keluarga tunggal yang
diciptakan oleh Satu Tuhan. Hal ini terlihat dari ayat: “Hai manusia! Sesungguhnya aku
adalah utusan Allah kepada kamu sekalian” (Qur’an, Surah 7. Al-A’raf, Ayat 158).
Kesatuan ini bersifat universal dan tidak parokial. Itu tidak terikat oleh batas geografis
apa pun dan mencakup seluruh umat manusia dan bukan kelompok atau suku atau
ras yang dikenal siapa pun (Chapra 1979). Hal ini dibuktikan dengan wahyu Al-Qur’an
berikut ini:
Explanation:
Main idea:
Islam aims at establishing a social order where all individuals are united by bonds of
unity and affection like members of one single family created by One God.
Supporting details:
Keyword:
● Unity: persatuan
● Justice: keadilan
Indonesian context:
Islam in Indonesia, where there are various tribes, nations, religions and races, must
be able to unite properly as contained in Pancasila, especially as the religion of the
majority, Muslims must be able to provide a safe and conducive space for other
religions and tolerate each other.
Important word:
"God orders justice and conduct and giving to relatives and forbids immorality and bad
conduct and oppression. He admonishes you that perhaps you will be reminded."
(Qur’an, Surah 16. An-Nahl, Verse 90). (“Tuhan memerintahkan keadilan dan perilaku
dan memberi kepada kerabat dan melarang perbuatan asusila dan perilaku buruk dan
penindasan. Dia memperingatkan Anda bahwa mungkin Anda akan diingatkan.
(Qur’an, Surah 16. An-Nahl, Ayat 90).
Meaning of word:
Conclusion:
Islam promotes the establishment of a universal social order where all individuals are
united like members of one family. This unity transcends geographical boundaries and
encompasses all of humanity. The Qur'an emphasizes the importance of justice, good
conduct, and treating others with fairness, regardless of their social status or familial
ties. Muslims are encouraged to uphold justice even if it goes against their own
interests, and to fulfill their responsibilities and trusts. The goal is to create a just and
harmonious society based on the principles of Islam.
(Islam mempromosikan pembentukan tatanan sosial universal di mana semua
individu bersatu seperti anggota satu keluarga. Kesatuan ini melampaui batas-batas
geografis dan meliputi seluruh umat manusia. Al-Qur'an menekankan pentingnya
keadilan, perilaku yang baik, dan memperlakukan orang lain dengan adil, tanpa
memandang status sosial atau ikatan keluarga. Muslim didorong untuk menegakkan
keadilan bahkan jika itu bertentangan dengan kepentingan mereka sendiri, dan untuk
memenuhi tanggung jawab dan amanah mereka. Tujuannya adalah untuk
mewujudkan masyarakat yang adil dan harmonis berdasarkan prinsip-prinsip Islam.)
Islam emphasizes distributive social justice and incorporates in its system a program
for redistribution of income and wealth so that every individual is guaranteed a
standard of living that is humane and respectable in harmony with the regard for the
dignity of man inherent in the teachings of Islam (Chapra 1979, p. 18). The Islamic
program for redistribution consists of three parts. Firstly, it implies assistance in
finding gainful employment to those unemployed and those looking for work and a
just payment for that work. Secondly, it emphasizes the payment of Zakat for
redistributing income from the rich to the poor who, because of personal disability or
handicaps (physical or mental), are unable to attain a respectable standard of living by
their own effort. This corresponds with this revelation of Qur’an: “So that it will not
be a perpetual distribution among the rich from among you” (Qur’an, Surah 59.Al-
Hashr, Verse 7). Thirdly, divisions of the estate of a deceased person, in accordance
with a given formula, among a number of individuals to intensify the distribution of
wealth in society. Even though this principle, Islam tolerates some inequalities of
income because not all people are equal in their character, ability, and service to
society. This corresponds with the following verses of Qur’an:
● “And it is He who has made you successors upon the earth and has raised
some of you above others in degrees [of rank]” (Qur’an, Surah 6.Al-An’am,
Verse 165).
● “And Allah has favored some of you over others in provision” (Qur’an, Surah
16.An-Nahl, Verse 71).
● “Do they distribute the mercy of your Lord? It is We who have apportioned
among them their livelihood in the life of this world and have raised some of
them above others in degrees [of rank] that they may make use of one another
for service. But the mercy of your Lord is better than whatever they
accumulate” (Qur’an, Surah 43.Az-Zukhruf, Verse 32).
Translate:
Explanation:
Islam's focus on distributive social justice and its program for income and wealth
redistribution aim to create a just and equitable society where everyone is afforded a
dignified standard of living.
Main idea:
Islam emphasizes distributive social justice and incorporates in its system a program
for redistribution of income and wealth so that every individual is guaranteed a
standard of living that is humane and respectable in harmony with the regard for the
dignity of man inherent in the teachings of Islam (Chapra 1979, p. 18).
Supporting details:
The Islamic program for redistribution consists of three parts; Even though this
principle, Islam tolerates some inequalities of income because not all people are equal
in their character, ability, and service to society.
Keywords:
Indonesian context:
in Indonesia there are official zakat institutions both government and private that are
useful for distributing zakat, and this zakat is allocated or given to the poor and others
Important word:
Islam emphasizes distributive social justice and incorporates in its system a program
for redistribution of income and wealth so that every individual is guaranteed a
standard of living that is humane and respectable in harmony with the regard for the
dignity of man inherent in the teachings of Islam. (Chapra 1979, p. 18)
Meaning of words:
Conclusion:
Islam emphasizes the importance of distributive social justice and includes a program
for the redistribution of income and wealth. This program consists of three elements:
providing employment opportunities and just wages, the payment of Zakat (charitable
giving), and the fair division of estates among heirs. These measures aim to ensure a
humane and respectable standard of living for every individual, in line with the
teachings of Islam. While Islam acknowledges that not all individuals are equal in
terms of character, ability, and contribution to society, it still promotes the principle
of social justice and discourages perpetual distribution of wealth among the rich. The
Qur'an recognizes that Allah has raised some individuals above others in degrees and
provisions, but it also emphasizes the importance of using one's blessings to serve
others and highlights the ultimate superiority of Allah's mercy over material
accumulation.
Translate:
Oleh karena itu, mendistribusikan keadilan sosial dalam masyarakat Islam, setelah
menjamin standar hidup yang manusiawi untuk semua anggota melalui lembaga
Zakat, memungkinkan perbedaan pendapatan tersebut, sesuai dengan perbedaan
nilai kontribusi atau layanan yang diberikan, dan setiap individu dapat menerima.
pendapatan yang sesuai dengan nilai sosial dari layanan yang dia sumbangkan kepada
masyarakat. Muslim percaya bahwa keadilan sosial dan kesetaraan dalam
kesempatan (bukan hasil) sangat penting bagi masyarakat untuk berfungsi. Zakat
merupakan mekanisme pendapatan untuk memberikan standar hidup minimum bagi
masyarakat miskin; itu juga salah satu dari lima rukun Islam. Secara umum disepakati
bahwa jumlah zakat adalah 2,5% dari harta yang dimiliki. Di negara-negara di mana
Zakat tidak dikumpulkan oleh negara, bank Islam membentuk Dana Zakat untuk
mengumpulkan uang yang akan disumbangkan ke lembaga keagamaan (Rexhepi dan
Ramadani 2015).
Explanation:
In Islamic society, the concept of distributing social justice involves ensuring a humane
standard of living for all individuals through the institution of Zakat. Zakat is a
mandatory form of charitable giving in Islam and is one of the five pillars of the faith.
It serves as a mechanism to provide income and support for the poor, aiming to
alleviate poverty and promote social welfare.
Main idea:
Supporting detail:
Zakat is a mechanism income to provide a minimum standard of living for the poor; it
is also one of the five tenets of Islam; It is generally agreed that the amount of Zakat
is 2.5 % of assets held.
Keyword:
● Social justice: keadilan sosial
● Zakat: bagian tertentu dari harta yang wajib dikeluarkan oleh setiap muslim
apabila telah mencapai syarat yang ditetapkan
Indonesian context:
in Indonesia zakat can be channeled through zakat institutions, from these zakat
institutions it will be distributed back to people in need such as the poor, converts,
and others
Important words:
Muslims believe that social justice and equality in opportunity (not outcome) are
crucial for a society to function.
(Muslim percaya bahwa keadilan sosial dan kesetaraan dalam kesempatan (bukan
hasil) sangat penting bagi masyarakat untuk berfungsi.)
Meaning of word:
Conclusion:
As Imam Shafi’i, the founder of the Shafi’i School of Muslim Jurisprudence said: “God
has created you free and therefore be nothing but free” (as cited in Chapra 2012).
Because man is born free no one, not even the state, has the right to abrogate this
freedom and to subject his life to regimentation; there is consensus among Muslim
jurists that restrictions cannot be imposed on a free, mature, and sane person (Chapra
2012). Everyone has his individual rights and his rights towards society. Jurists have
been agreed upon following principles (Chapra 2012):
● The larger interest of society takes precedence over the interest of the
individual;
● Although relieving hardship and promoting benefit are both among the prime
objectives of the Shari’ah, the former takes precedence over the latter;
● A bigger loss cannot be inflicted to relieve a smaller loss or a bigger benefit
cannot be sacrificed for a smaller one. Conversely, a smaller harm can be
inflicted to avoid a bigger harm or a smaller benefit can be sacrificed for a
larger benefit. I would say that those principles correspond with a proper social
justice in order that one society can function properly.
Translate:
Seperti Imam Syafi'i, pendiri Sekolah Syafi'i Muslim Fikih mengatakan: “Tuhan
telah menciptakan Anda bebas dan karena itu tidak lain adalah bebas
(sebagaimana dikutip dalam Chapra 2012). Karena manusia dilahirkan bebas, tidak
seorang pun, bahkan negara, memiliki hak untuk membatalkan kebebasan ini dan
untuk menundukkan hidupnya pada resimentasi; ada konsensus di antara Ahli
hukum Islam bahwa pembatasan tidak dapat dikenakan pada orang yang bebas,
dewasa, dan berakal orang (Chapra 2012). Setiap orang memiliki hak pribadinya
dan haknya terhadap masyarakat. Para ahli hukum telah menyepakati prinsip-
prinsip berikut (Chapra 2012):
• Kerugian yang lebih besar tidak dapat ditimbulkan untuk mengurangi kerugian
yang lebih kecil atau keuntungan yang lebih besar tidak bisa dikorbankan untuk
yang lebih kecil. Sebaliknya, bahaya yang lebih kecil bisa terjadi ditimbulkan untuk
menghindari kerugian yang lebih besar atau keuntungan yang lebih kecil dapat
dikorbankan untuk yang lebih besar keuntungan. Saya akan mengatakan bahwa
prinsip-prinsip itu sesuai dengan keadilan sosial yang tepat agar suatu masyarakat
dapat berfungsi dengan baik.
Explanation:
Main idea:
As Imam Shafi’i, the founder of the Shafi’i School of Muslim Jurisprudence said:
“God has created you free and therefore be nothing but free” (as cited in Chapra
2012).
Supporting detail:
Because man is born free no one, not even the state, has the right to abrogate this
freedom and to subject his life to regimentation; there is consensus among Muslim
jurists that restrictions cannot be imposed on a free, mature, and sane person
(Chapra 2012).
Keywords:
● Freedom: kebebasan
● Individual rights: hak individu
Indonesian context:
Important words:
God has created you free and therefore be nothing but free.
Meaning of words:
Conclusion:
(Dalam yurisprudensi Islam diakui bahwa setiap individu dilahirkan merdeka dan
karena itu kebebasannya tidak boleh dicabut oleh siapapun, termasuk negara.
Sementara individu memiliki hak individu, ada juga pengakuan atas tanggung
jawab mereka terhadap masyarakat. Para ahli hukum Islam telah menetapkan
prinsip-prinsip yang memprioritaskan kepentingan masyarakat yang lebih besar di
atas kepentingan individu dan memprioritaskan meringankan kesulitan daripada
mempromosikan manfaat. Mereka juga menyadari bahwa kerugian yang lebih
kecil dapat ditimbulkan untuk menghindari kerugian yang lebih besar, atau
keuntungan yang lebih kecil dapat dikorbankan untuk keuntungan yang lebih
besar. Prinsip-prinsip ini sejalan dengan konsep keadilan sosial dan sangat penting
untuk berfungsinya masyarakat).
Individual freedom, within the ethical limits of Islam, is therefore sacred only as
long as it does not conflict with the larger social interest or as long as the individual
does not transgress the rights of others.
Islamic law is not just a law, but also an ethics, as both constitute ‘a call to
righteous action in conformity with the guidance of Revelation’ (Reinhart 1983).
Thus, while the ethics related to contracts will include virtues such as honesty,
trust, transparency, etc., they also will incorporate fulfilling the legal obligations
and stipulations. As a result, ethics can be evaluated by examining whether the
legal conditions and stipulations of a contract are fulfilled or not (Arabi 1997). For
a transaction to be ethical, the overall goals of Shari’ah should also be fulfilled at
the contract level. Other than avoiding Riba and Gharar, indicates that fulfilling
Shari’ah at the transaction level would involve satisfying the objectives, principles,
and values underscored in the Islamic laws of transactions. This would include,
among others, linking returns to risks and bearing the risks of ownership by the
owner of the asset. An important related principle includes fulfilling the conditions
of a sale which is realized by transferring the asset to new owner. Similarly,
conditions of trust and guarantee relationships in terms of liability of loss has to
be implemented. Given the divine nature of these conditions, a contract would be
considered unethical if some of these stipulations are fulfilled.
Translate:
Oleh karena itu, kebebasan individu, dalam batas-batas etis Islam, hanya suci
sebagai selama tidak bertentangan dengan kepentingan sosial yang lebih besar
atau selama individu tidak melanggar hak orang lain. Hukum Islam bukan
hanya hukum, tetapi juga etika, karena keduanya merupakan 'panggilan untuk'
tindakan yang benar sesuai dengan tuntunan Wahyu '(Reinhart 1983). Dengan
demikian, etika yang berkaitan dengan akad akan mencakup kebajikan seperti
kejujuran, kepercayaan, transparansi, dll., mereka juga akan memasukkan
pemenuhan kewajiban hukum dan ketentuan. Akibatnya, etika dapat
dievaluasi dengan memeriksa apakah legal syarat dan ketentuan kontrak
terpenuhi atau tidak (Arabi 1997). Untuk sebuah. Agar transaksi menjadi etis,
keseluruhan tujuan syariah juga harus terpenuhi pada saat itu tingkat kontrak.
Selain menghindari Riba dan Gharar, menandakan pemenuhan itu. Syariah di
tingkat transaksi akan melibatkan pemenuhan tujuan, prinsip, dan nilai-nilai
yang ditegaskan dalam hukum transaksi Islam. Ini akan mencakup, antara lain
menghubungkan pengembalian dengan risiko dan menanggung risiko
kepemilikan oleh pemilik aset. Prinsip terkait yang penting termasuk
memenuhi persyaratan penjualan yang diwujudkan dengan mengalihkan aset
kepada pemilik baru. Demikian pula, kondisi hubungan kepercayaan dan
jaminan dalam hal kewajiban kerugian harus diimplementasikan. Mengingat
sifat ilahi dari kondisi ini, kontrak akan terjadi dianggap tidak etis jika beberapa
ketentuan ini dipenuhi.
Explanation:
Main idea:
Islamic law is not just a law, but also an ethics, as both constitute ‘a call to
righteous action in conformity with the guidance of Revelation’ (Reinhart
1983).
Supporting details:
Thus, while the ethics related to contracts will include virtues such as honesty,
trust, transparency, etc., they also will incorporate fulfilling the legal
obligations and stipulations; Other than avoiding Riba and Gharar, indicates
that fulfilling Shari’ah at the transaction level would involve satisfying the
objectives, principles, and values underscored in the Islamic laws of
transactions.
Keywords:
● Ethics: etika
● Islamic law: hukum islam
Indonesian context:
individual freedom in Indonesia also remains in line with the customs, norms
and culture that apply in each region. so it is not merely free without rules or
norms of life.
Important words:
Individual freedom, within the ethical limits of Islam, is therefore sacred only
as long as it does not conflict with the larger social interest or as long as the
individual does not transgress the rights of others.
Meaning of words:
Conclusion:
Translate:
Explanation:
Main idea:
Supporting details:
The two mean categories of prohibitions related to economic transactions
recognized in Shari’ah are Riba and Gharar.
Keywords:
Indonesian context:
Many Indonesian people are aware that riba and gharar are things that are not
allowed in economic transactions, therefore many have turned to Islamic
banks.
Important words:
Meaning of words:
Conclusion:
A financial activity will be ethical if it promotes good in the society. The same logic
can be used to determine the ethicality of transactions and activities of Islamic banks.
An activity of an Islamic bank would be ethical when it enhances welfare and morality
of individuals, which make the whole society. According to this, any financial activities
that produce adverse effects on either welfare or Islamic morals would be considered
unethical. Another aspect related to ethics at the contract level relates to intention
(Niyah) and outcomes. Niyah is an integral component in worshiping rituals (Ibadat),
in economic affairs (Fiqh Muamalat). Illegitimate motive will make a contract illegal
even when the all the legal components of a contract are fulfilled. An intention of
coming up with an illicit act using a valid contract would not only be void, but also
immoral. The legality of a transaction will not only depend on the validity of a contract
but also on the end use of the contract which can be based on forecasts rather than
actual results (by the Niyah) and e based on actual results rather than forecasts by
examining the outcome or consequences (Arabi 1997).
Translate:
Explanation:
Main idea:
Supporting details:
The same logic can be used to determine the ethicality of transactions and
activities of Islamic banks; An activity of an Islamic bank would be ethical when
it enhances welfare and morality of individuals, which make the whole society.
Keywords:
Indonesian context:
Islamic banks in Indonesia must offer products that are useful to help
customers, such as hajj savings, qurban savings, easy infaq which are
distributed properly. These things can be a good concern for prospective
customers
Important words:
Meaning of words:
Conclusion:
Ethical financial activities, including those carried out by Islamic banks, are
determined by their promotion of societal good and welfare. Islamic banks
strive to enhance the welfare and morality of individuals, thereby benefiting
society as a whole. Any financial activities that have adverse effects on welfare
or Islamic morals are considered unethical. Intention (Niyah) and outcomes are
also crucial in assessing the ethicality of contracts. Illegitimate motives render
a contract illegal, even if all legal requirements are met. The end use of a
contract, based on intentions and actual results, influences its legality and
moral standing.
(Kegiatan keuangan yang etis, termasuk yang dilakukan oleh bank syariah,
ditentukan oleh promosi kebaikan dan kesejahteraan masyarakat. Bank
syariah berusaha untuk meningkatkan kesejahteraan dan moralitas individu,
sehingga bermanfaat bagi masyarakat secara keseluruhan. Setiap kegiatan
keuangan yang berdampak buruk pada kesejahteraan atau moral Islam
dianggap tidak etis. Niat (Niyah) dan hasil juga penting dalam menilai etika
kontrak. Motif tidak sah membuat kontrak ilegal, bahkan jika semua
persyaratan hukum dipenuhi. Penggunaan akhir suatu kontrak, berdasarkan
niat dan hasil aktual, memengaruhi legalitas dan kedudukan moralnya).
All Islamic banks will be expected to be ethical in ways similar to their conventional
counterparts. As mentioned above, ethics include among others conducting
operations with integrity and with due skill, care and diligence, avoid conflict of
interest (Davies 2002). As ethics relates to the notions of what is right and wrong in
the organizational context, for Islamic banks it’s also influenced by the Islamic notions
of legality and morality. Islamic banks have additional ethical dimensions which need
to fulfill according to the laws and morals of Shari’ah.
Translate:
Semua bank Islam diharapkan untuk bersikap etis dengan cara yang serupa
dengan rekan konvensional mereka. Seperti disebutkan di atas, etika antara
lain melakukan operasi dengan integritas dan keterampilan, perhatian dan
ketekunan, menghindari konflik kepentingan (Davies 2002). Karena etika
berkaitan dengan pengertian tentang apa yang benar dan salah dalam konteks
organisasi, untuk bank syariah juga dipengaruhi oleh pengertian Islam tentang
legalitas dan moralitas. Bank syariah memiliki dimensi etika tambahan yang
perlu dipenuhi sesuai dengan hukum dan moral syariah.
Explanation:
Main idea:
Supporting details:
As ethics relates to the notions of what is right and wrong in the organizational
context, for Islamic banks it’s also influenced by the Islamic notions of legality
and morality.
Keywords:
Indonesian context:
in Indonesia Islamic banks and conventional banks can work together and
avoid conflicts that damage both or one of them.
Important words:
The sentence you provided is: "Islamic banks have additional ethical
dimensions which need to fulfill according to the laws and morals of Shari’ah."
Meaning of words:
Conclusion:
Translate
Apa yang Tersisa di Balik Keuangan dan Perbankan Islam
Sistem?
Ada lebih dari prinsip bebas bunga di bawah Perbankan Islam dan Sistem keuangan.
Lima karakteristik utama dari Sistem Perbankan Islam mengikuti (Ahmad 2000):
• Unsur pertama dan dasar dari sistem Perbankan Islam melibatkan sistem
pembagian ekuitas, yang berarti bahwa seluruh sistem beroperasi berdasarkan prinsip
pengembalian variabel tergantung pada produktivitas dan kinerja proyek (Ahmad
2000; Haiwad 2008).
• Yang kedua, visi Perbankan Syariah. Menggerakkan seluruh ekonomi, itu sistem
moneter utama, dan transaksi bisnis dari kemitraan berbasis utang untuk kemitraan
berbasis ekuitas dan pembagian risiko. Ini menyajikan cara baru atau mengorganisir
ekonomi, itu panggilan untuk semua orang untuk berpartisipasi dalam produktif
sistem. Ini kebalikan dari sistem konvensional di mana seluruh perekonomian berada
berdasarkan menghasilkan uang dari uang berdasarkan spekulasi (Ahmad 2000
Haiwad 2008).
• Ketiga, kerangka pembagian risiko. Karena setiap transaksi di Perbankan Islam
risiko dibagi antara mitra counter, baik peminjam dan pemberi pinjaman, Etika dan
Tanggung Jawab Sosial dalam Keuangan Islam 139 penyedia modal dan pengusaha,
bank dan klien, mereka semua berbagi risiko sebagai syarat utama untuk ikut serta
dalam transaksi.
Explanation
Interest free principle under the Islamic Banking and Financial System. The Five
features are :
The first and basic element of the Islamic Banking system involves the system equity
distribution, principal
Second, the vision of Islamic Banking. Drives the entire economy, it's primary
monetary system, and business transactions from debt-based partnerships to equity-
based partnerships and risk sharing
Third, the risk sharing framework. Because every transaction in Islamic Banking risk is
shared between counter partners, both borrower and lender, Ethics and Social
Responsibility in Islamic Finance.
Main Idea :
There is much more than the interest free principle under the Islamic Banking and
Financial System.
Supporting Details :
The first and basic element of Islamic Banking system involves a system of
equity sharing.
Keyword :
Financial System
Indonesian Context :
Important word :
Syariah banking Drives the entire economy, major monetary systems, and business
transactions from debt partnership partnerships to equity partnerships and risk
sharing
Meaning of words :
Conclusion
Five major characteristics of Islamic Banking System follow (Ahmad 2000): • The first and
basic element of Islamic Banking system involves a system of equity sharing, which means
that the whole system operates on the principle of a variable return depending on the
productivity and the performance of the projects (Ahmad 2000; Haiwad 2008).
Moving the whole economy, its major monetary system, and business transactions from
debt based partnership to an equity based partnership and risk sharing.
(Lima karakteristik utama dari Sistem Perbankan Islam mengikuti (Ahmad 2000): • Elemen
pertama dan dasar dari sistem Perbankan Islam melibatkan sistem pembagian ekuitas,
yang berarti bahwa seluruh sistem beroperasi berdasarkan prinsip pengembalian variabel
tergantung pada produktivitas dan kinerja proyek (Ahmad 2000; Haiwad 2008).
Menggerakkan seluruh ekonomi, sistem moneter utamanya, dan transaksi bisnis dari
kemitraan berbasis utang menjadi kemitraan berbasis ekuitas dan pembagian risiko.)
● Fourth, Islamic economy is rooted by Ethics Framework where the ethical and social
dimensions play an essential and significant role. There are Halal-Per- missible and
Haram-Forbidden activities included in all private and public economic activities. Even
there can be some demand for a specific product or service as producing and selling
alcohol, pork or gambling, if its forbidden by the Shari’ah, the products and services
are unacceptable and strictly prohibited (Ahmad 2000; Haiwad 2008).
● Fifth, the main aim of money in Islamic Banking is to stimulate economic production,
to encourage and finance innovation, new ideas, skills, and oppor- tunities. Islamic
Finance and Banking is based on physical expansion of econ- omy, not the financial
expansion. Money cannot beget money (Ahmad 2000).
● Sixth, the most fundamental and important characteristic is that Islamic Finan- cial and
Banking System is non-inflationary.
(Ahmad 2000; Haiwad 2008; Qur’an, Surah 7.Al- ’A’Raf, Verse The biggest concerns of
all economies are to maintain the inflationary rate on the proper level. Islamic finance
restores equilibrium between the financial expansion, money supply and the physical
expansion. Stability in the value of money is a primary goal of Islamic Finance85;
Qur’an, Surah 17.Al-Isra, Verse 35; Qur’an, Surah 26.Ash- Shu’ara, Verse 181).
Translate
Keempat, ekonomi Islam berakar pada Kerangka Etika dimana etika dan dimensi sosial
memainkan peran penting dan signifikan. Ada kegiatan Halal-Permissible dan Haram-
Forbidden yang termasuk dalam semua kegiatan ekonomi swasta dan publik. Bahkan
mungkin ada permintaan untuk produk atau layanan tertentu seperti memproduksi
dan menjual alkohol, daging babi atau perjudian, jika dilarang oleh Syariah, produk
dan layanan tersebut tidak dapat diterima dan dilarang keras (Ahmad 2000; Haiwad
2008).
Kelima, tujuan utama uang dalam Perbankan Islam adalah untuk merangsang produksi
ekonomi, untuk mendorong dan membiayai inovasi, ide baru, keterampilan, dan
peluang. Keuangan dan Perbankan Islam didasarkan pada ekspansi fisik ekonomi,
bukan ekspansi keuangan. Uang tidak bisa melahirkan uang (Ahmad 2000).
Keenam, karakteristik yang paling mendasar dan penting adalah bahwa Sistem
Keuangan dan Perbankan Islam bersifat non-inflasi.
Main Idea :
The biggest concerns of all economies are to maintain the inflationary rate on the
proper level.
Supporting Details :
● Fourth, Islamic economy is rooted by Ethics Framework where the ethical and social
dimensions play an essential and significant role.
● Fifth, the main aim of money in Islamic Banking is to stimulate economic production.
● Sixth, the most fundamental and important characteristic is that Islamic Finan- cial and
Banking System is non-inflationary.
Keyword :
Interest free principle under Islamic Banking
Financial System
Indonesian Context :
Islamic finance restores equilibrium between the financial expansion, money supply
and the physical expansion. Stability in the value of money is a primary goal of Islamic
Finance.
Important word :
The biggest concerns of all economies are to maintain the inflationary rate on the
proper level. Islamic finance restores equilibrium between the financial expansion,
money supply and the physical expansion. Stability in the value of money is a primary
goal of Islamic Finance.
Meaning of word :
Conclusion :
Fifth, the main aim of money in Islamic Banking is to stimulate economic production, to
encourage and finance innovation, new ideas, skills, and oppor- tunities.
Islamic Finance and Banking is based on physical expansion of econ- omy, not the financial
expansion.
Islamic finance restores equilibrium between the financial expansion, money supply and
the physical expansion.
Stability in the value of money is a primary goal of Islamic Finance85; Qur`an, Surah 17.
(Kelima, tujuan utama uang dalam Perbankan Islam adalah untuk merangsang produksi
ekonomi, untuk mendorong dan membiayai inovasi, ide baru, keterampilan, dan peluang.
Keuangan dan Perbankan Islam didasarkan pada ekspansi fisik ekonomi, bukan ekspansi
keuangan.
Al- `A`Raf, Ayat Kekhawatiran terbesar dari semua ekonomi adalah mempertahankan
tingkat inflasi pada tingkat yang tepat.
Stabilitas nilai uang adalah tujuan utama Keuangan Islam85; Qur'an, Surah 17.
8. Conclusion
This chapter discuss the role of laws and morals in defining ethical practices of Islamic
banks. While Islamic law and ethics appears to be closely linked, cases mayarise when
the practice of Islamic banks can produce unethical results even when the contracts
are legitimate. To judge if banking practices are ethical or not, it is important to
examine the consequence of transactions on morality and welfare. Situations can arise
when the transactions may not have legal/ethical issues at the contract level, but can
be unethical as it has adverse impact on welfare or morality. In this chapter is
discussed the morality of excessive and there is concluded that the practice of Islamic
banks could be unethical if they fuel the increase in indebtedness of individuals
beyond certain levels.
The ethicality of Islamic banking practice arising from the effects on moral values
cannot be grasped by focusing at the legal aspects of contracts only. A question then
arises whether morality and ethical norms can be realized by Islamic banks that are
engaged in expanding their businesses in competitive markets. While there are certain
aspects of ethical self-regulation at the organizational level that can be useful, it has
limitations. Davies (2002, p. 281) points out that self-regulation may not be
appropriate for ‘raising standards in the market as a whole, or dealing with a problem
where there was a need for the whole industry to change’.
Furthermore, when the conduct of banks has implications that go beyond its realm
and affects other members of the society, regulatory oversight may be necessary to
govern these activities.
Translate
Bab ini membahas peran hukum dan moral dalam mendefinisikan praktik etika bank
Islam. Sementara hukum dan etika Islam tampaknya terkait erat, kasus dapat muncul
ketika praktik bank Islam dapat menghasilkan hasil yang tidak etis bahkan Ketika
kontrak itu sah. Untuk menilai apakah praktik perbankan etis atau tidak, itu benar
penting untuk mengkaji konsekuensi transaksi terhadap moralitas dan kesejahteraan.
Situasi dapat muncul ketika transaksi mungkin tidak memiliki masalah hukum/etika di
tingkat kontrak, tetapi dapat menjadi tidak etis karena berdampak buruk pada
kesejahteraan atau moralitas. Dalam bab ini dibahas akhlak yang berlebihan dan ada
kesimpulan bahwa praktik bank syariah bisa menjadi tidak etis jika memicu
peningkatan utang individu di luar tingkat tertentu.
Etisitas praktik perbankan syariah yang timbul dari efek pada nilai-nilai moral tidak
dapat dipahami dengan berfokus pada aspek hukum kontrak saja. Pertanyaan kemudian
muncul apakah moralitas dan norma etika dapat diwujudkan oleh bank syariah yang
bergerak dalam mengembangkan usahanya di pasar yang kompetitif. Sementara ada
aspek-aspek tertentu dari regulasi-diri etis di tingkat organisasi yang dapat bermanfaat,
ia memiliki keterbatasan. Davies (2002, p. 281) menunjukkan bahwa self-regulation
mungkin tidak sesuai untuk 'meningkatkan standar di pasar secara keseluruhan, atau
menangani masalah di mana seluruh industri perlu berubah'. Selanjutnya, ketika
perilaku bank memiliki implikasi yang melampaui wilayahnya dan mempengaruhi
anggota masyarakat lainnya, pengawasan peraturan mungkin diperlukan untuk
mengatur kegiatan ini.
Main Idea :
The role of law and morals in defining the ethical practices of Islamic banks. While
Islamic law and ethics appear to be inextricably linked, cases may arise when Islamic
banking practices can produce unethical results even when the contract is valid.
Supporting Details :
In order to judge whether banking practices are ethical or not, it is really important to
examine the consequences of transactions on morality and well-being. The ethicality of
Islamic banking practices arising from the effect on moral values cannot be understood
by focusing on the legal aspects of contracts alone.
Keyword :
Indonesia context :
Morals and ethics can become unethical if they trigger an increase in individual debt
beyond a certain level.
Important word :
In order to judge whether banking practices are ethical or not, it is really important to
examine the consequences of transactions on morality and well-being. Situations may
arise where a transaction may not have legal/ethical issues at the contract level, but may
be unethical due to an adverse impact on welfare or morality.
Meaning of word :
Conclusion :
Situations can arise when the transactions may not have legal/ethical issues at the
contract level, but can be unethical as it has adverse impact on welfare or morality.
The ethicality of Islamic banking practice arising from the effects on moral values
cannot be grasped by focusing at the legal aspects of contracts only.
(Situasi dapat muncul ketika transaksi mungkin tidak memiliki masalah hukum/etika
di tingkat kontrak, tetapi dapat menjadi tidak etis karena berdampak buruk pada
kesejahteraan atau moralitas.
Etisitas praktik perbankan syariah yang timbul dari pengaruh nilai moral tidak dapat
dipahami dengan berfokus pada aspek hukum kontrak saja.)
If Islamic banks narrowly focus on legality of transactions that can lead unethical
outcomes, there is a need to have a mechanism to ensure that the Islamic banking
practices are ethical by not contradicting the moral teachings of Islam. Kamali (2008)
states that “if public interest (maslahah) necessitates it, a lawful government is
authorized to change the reprehensible into forbidden and the recommended into
obligatory. In the past, Islamic societies had institutions that oversaw the morals issues
related to economic affairs. . . while the courts dealt with the legal issues, the market
controller (muhtasib) was authorized to intervene and stop immoral practices. During
contemporary times, this role can be taken up by the regulators whereby ensuring ethics
at the organizational level is moved to the public domain” (as cited in Ahmed 2012, p.
8).
Prohibition of Riba is central to Islamic financial ethics and law. All transactions
and contracts must be free from elements of Riba. Moreover, Islamic banking is not
based on creditor-debtor relationship, but on the principles of PSL between the bank
and its customer under different financing arrangements and other trading and leasing
contracts. Whilst, non-Islamic banks rely primarily on the interest rate instrument,
Islamic banks use a variety of contracts and instruments that have been developed in
compliance with Shari’ah laws. Moreover, in Islamic finance, the nexus between
financial assets and real assets is crucial. Indeed, they connect bank resources in
financing real assets rather than investing in derivatives. In this paper, we introduced
the foundation for Islamic banking practices and we discussed the governance concepts
important in the conduct of Islamic banking. The main differences between Islamic and
non Islamic banks were identified as well. According to the literature (for example, see
Rexhepi and Ramadani 2015), Islamic banks outperform non-Islamic banks especially
during the last financial crisis.
Translate :
Jika bank syariah secara sempit fokus pada legalitas transaksi yang dapat
mengarah pada hasil yang tidak etis, ada kebutuhan untuk memiliki mekanisme untuk
memastikan bahwa praktik perbankan syariah etis dengan tidak bertentangan dengan
ajaran moral Islam. Kamali (2008) menyatakan bahwa “jika kepentingan umum
(maslahah) mengharuskannya, pemerintah yang sah berwenang mengubah yang tercela
menjadi terlarang dan yang dianjurkan menjadi wajib. Pada masa lalu, masyarakat
Islam memiliki lembaga-lembaga yang mengawasi masalah-masalah akhlak yang
berkaitan dengan urusan ekonomi. . . sementara pengadilan menangani masalah hukum,
penguasa pasar (muhtasib) berwenang mengintervensi dan menghentikan praktek-
praktek asusila. Selama masa kontemporer, peran ini dapat diambil oleh regulator
dimana memastikan etika di tingkat organisasi dipindahkan ke ranah publik”
(sebagaimana dikutip dalam Ahmed 2012, hlm. 8).
Larangan Riba adalah inti dari etika dan hukum keuangan Islam. Semua
transaksi dan akad harus bebas dari unsur Riba. Selain itu, perbankan syariah tidak
didasarkan pada hubungan kreditur-debitur, tetapi pada prinsip-prinsip PSL antara bank
dan nasabahnya di bawah pengaturan pembiayaan yang berbeda dan kontrak
perdagangan dan sewa lainnya. Sementara bank non-Islam terutama mengandalkan
instrumen suku bunga, bank syariah menggunakan berbagai kontrak dan instrumen
yang telah dikembangkan sesuai dengan hukum Syariah. Selain itu, dalam keuangan
Islam, hubungan antara aset keuangan dan aset riil sangat penting. Memang, mereka
menghubungkan sumber daya bank dalam membiayai aset riil daripada berinvestasi
dalam derivatif. Dalam makalah ini, kami memperkenalkan dasar-dasar praktik
perbankan syariah dan kami mendiskusikan konsep-konsep tata kelola yang penting
dalam menjalankan perbankan syariah. Perbedaan utama antara bank Islam dan non-
Islam juga diidentifikasi. Menurut literatur (misalnya lihat Rexhepi dan Ramadani
2015), bank syariah mengungguli bank non-syariah terutama selama krisis keuangan
terakhir
Main Idea :
Supporting Details :
Keyword :
Transaction legality
Prohibition of Riba
Indonesia context :
in Islamic finance, the relationship between financial assets and real assets is very
important. Indeed, they attribute bank resources in financing real assets rather than
investing in derivatives.
Important word :
if the public interest (maslahah) requires it, the legitimate government stipulates that
what is reprehensible becomes prohibited and what is recommended becomes
obligatory.
Meaning of word :
Different, (adjective) : things that make them different from one another (berbeda)
Conclusion :
Concluding paragraphs this introduces the basics of Islamic banking practices and we
discuss the governance concepts that are important in conducting Islamic banking. Key
differences between Islamic and non-Islamic banks are also identified. According to
the literature (e.g. see Rexhepi and Ramadani 2015), Islamic banks outperformed non-
Sharia banks especially during the last financial crisis